Finding a new partner
If you ask your current accounting partner about something other than taxes and his or her eyes glaze over or if he or she doesn’t bother to return your calls in a timely manner, it may be time to start a new relationship.
“You should change any time you think there’s a mismatch,” Myeroff says. “Even though there is overlap, firms are in business to do different things. There’s a market that doesn’t need an advocate but just needs us to get stuff done for them at an affordable price. There are larger firms that talk about being advocates and advisers, but if you dig deeper, there are people in those firms who are good, but the firm’s strategy or overall model might be based on something else.
“If you have a mismatch, understand that different firms do different things and you need to find the category or firm that will really suit your needs. If you’re not feeling like there’s engagement and advocacy, there’s never a bad time to switch, particularly in a difficult market.”
Just like you might always b
e looking to find a better deal on office supplies, you need to be open to the idea of upgrading your accounting firm. But be careful about how you go about it.
“Since business itself is a dynamic activity and change is constant, companies should always be open to either improving or upgrading their relationships,” Nelson says. “Whether they’re considering upgrading, changing or improving the relationships they have either with a new accounting firm that can offer a greater depth and breadth of services or a new law firm, banker or insurance provider, companies should always be examining the benefits of increasing the variety of competencies that new providers can bring them. It’s also important to point out that being served by service providers who know a company well — and know it in a nuanced way — can provide a level and quality of service that a firm that doesn’t would have more difficulty offering.”
The other thing to take into consideration is the timing of any move you make.
“The real strong advice to anybody who is thinking about switching: Do it early in your year,” Hendren says. “You don’t want to wait until November or December, because you need to make sure the firm has enough time to get up to speed, get your work scheduled, understand your needs, and you don’t want to rush into all of that between Thanksgiving and Christmas. It needs to be done well in advance so that everyone’s comfortable and you can go through it in a real orderly transition.
“But I think because of the recession, accounting firms’ pricing is more competitive now than any time I’ve ever seen it in 32 years. Pricewise, now is the time to look around. But timing is the most important thing. I can’t overemphasize that enough. We’ve seen a lot of people change, and we’ve worked with a lot of people on changes, and we’re willing to do it on a hurry-up, but it works so much better in a more orderly fashion.”
Prices are low, and there are a lot of companies out there that want your business. But take your time, find the right match and follow the same principles you do with any other major investment.
Make sure all fee arrangements are clear and understood by both parties at the beginning of the relationship, and decide how much contact you are comfortable with. Do you prefer a formal quarterly meeting or informal contact several times a week? Work out the details in advance and don’t base your decision on price alone.
“I would caution companies to look out for the ‘too good to be true’ deal of low fees that is tempting short term but is not based on an in-depth knowledge of the company and its true risks and value drivers,” Howe says.
